When Courts Find Accountants Liable for Constructive Fraud, the Implication

question 74

Multiple Choice

When courts find accountants liable for constructive fraud, the implication is that:

• A) Auditors should always be liable when investors lose money due to deceit
• B) Accountants may be liable for fraud even when they had no knowledge of deceit
• C) Auditors should be able to detect all deceit by management
• D) Accountants may be held liable even to third parties to whom they did not have a duty

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